Best Hot Water Heater in Canada: A Complete Buying Guide (2025)

Square Footage	Furnace BTU
1,000-1,200 sq. ft. Home	40,000 - 60,000 BTU
1,200-1,500 sq. ft. Home	60,000 BTU
1,500-1,800 sq. ft. Home	60,000 - 80,000 BTU
1,800-2,500 sq. ft. Home	80,000 - 100,000 BTU
2,500-3,500 sq. ft. Home	100,000 to 120,000 BTU

When it comes to daily comfort at home, few appliances matter more than your hot water heater. From morning showers to laundry and dishwashing, a reliable supply of hot water is essential. But choosing the right water heater can feel overwhelming, especially with so many types, brands, features, and costs to consider.

This comprehensive water heater buying guide for Canadians will help you navigate all the options so you can make the best decision for your home. Whether you’re building a new property, replacing an old unit, or simply looking to save on energy bills, here’s everything you need to know before buying.

What We’ll Cover in This Guide

Types of water heaters (tank, tankless, hybrid)
Gas vs. electric water heaters
Tank vs. tankless pros and cons
Best water heater features to look for
Top water heater brands in Canada
Warranty options
Installation considerations
Renting vs. buying
Water heater costs and financing options
Rebates and incentives for Canadians
Sizing and space requirements
Pro tips to save energy
Maintenance and hard water considerations
Hybrid water heaters explained
Frequently asked questions

Storage Tank Water Heaters

How They Work

Traditional storage tank heaters are the most common in Canada. They consist of a large insulated tank (usually 30–80 gallons or 75–400 litres) that continuously heats and stores water until you need it.

The advantage is convenience: hot water is always available. But during peak use, the supply can run out and take time to reheat.

Fuel Options for Tank Heaters

Gas Water Heaters:

Heat water faster than electric models
Cheaper to run (where natural gas is available)
Easier repairs, but harder installation due to venting
Slightly shorter lifespan (8–12 years)

Electric Water Heaters:

Easier installation (no venting required)
More environmentally friendly (if powered by renewable electricity)
Longer average lifespan (10–15 years)
More costly to run depending on electricity rates

Gas vs. Electric at a Glance

Upfront cost: Electric cheaper
Operating cost: Gas usually cheaper
Efficiency: Electric is more efficient
Heating speed: Gas heats faster
Safety: Electric safer (no risk of leaks/CO poisoning)
Availability: Natural gas not available everywhere

Tankless Water Heaters vs. Traditional Tank

Tankless (on-demand) heaters heat water instantly as it flows through the unit, rather than storing it.

Tankless Pros

Unlimited hot water supply
Energy-efficient (only heats when needed)
Space-saving, wall-mounted design
Longer lifespan (15–25 years)

Tankless Cons

Higher upfront and installation costs
Retrofitting plumbing/electrical can be expensive
No hot water during power outages (for electric units)

Traditional Tank Pros

Lower initial cost
Familiar technology for installers
Good for households with simultaneous water use
Wide variety of sizes available

Traditional Tank Cons

Limited supply (can run out)
Less efficient (always heating water)
Shorter lifespan (8–12 years)
Large space requirement
Risk of leaks as the tank ages

Key Features to Look For in a New Water Heater

Drain Valve: Brass valves are more durable than plastic and make maintenance easier.
Glass Lining: Protects against internal corrosion, extending the heater’s life.
User Interface: Digital displays show performance, allow temperature control, and may include vacation/eco modes to save money.

Best Water Heater Brands in Canada

A.O. Smith / John Wood / GSW

Largest manufacturer in North America
Wide range: gas, electric, hybrid, tankless, solar
ProLine & ProLine Master models exceed Canadian energy standards
Patented glass lining technology (Blue Diamond) for corrosion resistance
Over 80 years in the industry

Rheem & Ruud

Known for efficiency and durability
ENERGY STAR® certified models
Advanced user controls and safety features (Guardian System air/fuel shut-off)
Eco-friendly burners with low NOx emissions

Whirlpool

One of the world’s biggest appliance brands
Innovative features like self-cleaning technology and FLAME LOCK safety system
Energy-efficient insulation and certification for high altitudes
Strong warranty coverage

Giant

Canadian-owned manufacturer
Gas and electric models designed for Canadian conditions
Excellent local availability and service support

💡 Pro Tip: Choosing a reputable brand ensures better warranty coverage, efficiency, and long-term reliability.

Warranty Options

Water heater warranties vary by brand and model:

Standard coverage: 3–6 years
Premium units: up to 12 years
Longer warranties often include higher-quality components (better anode rods, thicker linings, etc.)

Always compare warranty terms, especially for tank vs. tankless models.

Installation: Setting Up Your New Water Heater

Hire a professional: Water heaters involve plumbing, gas, and electrical work. DIY installation is risky and may void warranties.
Installation time: Tank replacement is relatively quick; switching to tankless often requires extensive retrofitting.
Ask for credentials: Always check HVAC contractor certifications and reviews before hiring.

Rent or Buy: The Canadian Dilemma

Renting Pros:

Low upfront cost
Maintenance included
Easy replacement

Renting Cons:

Expensive over the long term
No ownership

Buying Pros:

Lower lifetime cost
Full ownership and freedom of choice
Can increase home value

Buying Cons:

Higher upfront cost
Responsible for repairs/maintenance

👉 If you plan to stay in your home long-term, buying is usually the better investment. Financing plans can also spread out the cost.

Water Heater Costs and Prices in Canada

Storage tank (including installation): $1,000 – $1,300
Tankless (including installation): $2,000 – $4,500
Installation cost alone:
- Tank: $500 – $1,500
- Tankless: $800 – $3,000
Rental cost: $15 – $60/month (varies by province and type)

💡 Tip: Consider financing if upfront cost is high. Many HVAC companies offer low-interest promotions.

Rebates and Incentives for Canadians

Water heating makes up 17% of household energy use in Canada. Many provinces offer rebates for ENERGY STAR® water heaters.

Check with:

Provincial governments
Utility companies
Banks and energy programs
Manufacturer promotions

Choosing an efficient model can save you money upfront (rebates) and long-term (lower bills).

Sizing Your Water Heater: Space & Capacity

To size correctly, calculate peak hot water usage and match it with the unit’s First Hour Rating (FHR).

Average hot water use per activity:

Shower: 10–15 gallons
Washing machine: 10–30 gallons
Dishwasher: 6–10 gallons
Handwashing: 1–3 gallons

👉 Example: A family of 4 may need a 50–60 gallon tank or a tankless unit with at least 8–10 GPM flow rate.

Pro Tips for Energy Savings

Insulate water pipes (2–3 metres from the tank) to reduce heat loss.
Adjust temperature settings: Lower temps = lower bills and safer for children. (But don’t go too low — risk of bacteria growth like Legionella).
Use vacation mode: Many modern units allow you to save energy while away.

Maintenance for Longer Lifespan

Flush tank annually to remove sediment buildup
Inspect and replace anode rod every 3–5 years
Test pressure relief valve annually
Clean tankless filters regularly
Schedule professional inspections every few years

Hard Water and Its Impact

Hard water minerals (calcium, magnesium) can shorten your heater’s lifespan. Signs include:

Lower water pressure
Noisy operation
Slower heating
Frequent maintenance needs

Solutions:

Flush more frequently (every 6 months)
Lower temperature setting
Use a water softener
Choose corrosion-resistant models

Hybrid Water Heaters

Heat pump water heaters transfer heat from the air into water, making them up to 70% more efficient than standard electric models.

Pros:

Energy savings
Long lifespan
Can handle high demand

Cons:

Higher upfront cost
Require more installation space
Work best in mild to warm climates

Frequently Asked Questions (FAQs)

1. What are signs my water heater needs replacing?

Discoloured water
Rising energy bills
Leaks around the tank
Strange noises
Takes longer to heat up

2. Will my water heater work during a power outage?

Gas heaters with pilot lights may work
Electric models won’t

3. Can high water pressure damage my heater?
Yes, above 80 psi can damage pipes/appliances. Install a pressure reducing valve.

4. What is the First Hour Rating (FHR)?
The amount of hot water a unit can supply in the first hour of use.

5. Why does my water heater smell?

Rotten egg smell = anode rod issue
Gas smell = shut off gas & call a professional immediately

6. Can a water heater freeze in Canada?
Unlikely. More often, pipes freeze rather than the unit itself.

7. How long does it take to heat up?

Gas: 30–60 minutes
Electric: 1–3 hours

8. How efficient are water heaters?

Electric storage: 0.87–0.95 UEF
Gas storage: 0.50–0.70 UEF
Tankless: 0.80–0.99 UEF

Final Thoughts

Buying a new water heater is a major decision, but with the right information, you can choose confidently. Whether you go with a traditional tank or a modern tankless system, the key is to balance upfront costs, household needs, and long-term efficiency.

👉 Ready to explore your options? Get a free water heater quote today from FurnacePrices.com